Des Moines Staff to Recommend Heart of America Project
“It is unfortunate that city staff appear uninterested in considering various compromise opportunities that would allow our group to further research this transformative project,” MD Isley, interim director of the Des Moines Metropolitan Center for the Arts, said in an emailed statement reported by businessrecord.com.
As reported by businessrecord.com, city staff will advise the Des Moines City Council during its Nov. 2 meeting to advance a submission by Heart of America Group to construct an office building on an empty lot opposite the historic city hall. The recommendation also calls for rejecting a competing proposal to build a performing arts center on the site.
Development Plans and Financing Terms for Robert D. Ray Drive
The city council approved preliminary terms of an urban renewal development agreement with Heart of America Group on Sept. 14. The project entails putting up a five-story office building utilizing mass timber on municipal property located at 401 Robert D. Ray Drive. Heart of America Group is set to acquire the slender 0.4-acre lot from the city for $1 million, while the anticipated construction expenses will total $24 million. Under the agreement terms, the city would provide $3.95 million in tax increment financing incentives, with completion anticipated in 2028.
That Sept. 14 approval triggered a 30-day period for another group to submit a competitive bid. On Oct. 13, the freshly established nonprofit organization known as the Des Moines Metropolitan Center for the Arts put forward its plan to construct a performing arts center on the location. According to axios.com, Des Moines vacated its historic City Hall early this year to consolidate offices in a former Nationwide building, after which redevelopment efforts stalled because about a dozen developers expressed interest but none submitted proposals, partly due to historic preservation challenges.
The nonprofit’s proposal would connect the new venue to the former city hall and span across Robert D. Ray Drive. The plan requires a fundraising campaign approaching $200 million, specifically estimated between $190 million and $210 million including a $25 million operating endowment, according to axios.com. Organizers asked the city council to delay action on the Heart of America proposal for six months to allow time to develop details. Under the staff recommendation, that delay will not happen.
Evaluating the Competing Proposals
A staff report obtained by businessrecord.com lays out the pros and cons of each proposal. City staff noted that the Heart of America proposal demonstrates a plan for financing and proposed terms for acquiring the property, features a near-term construction schedule, brings new private investment to the East Village, returns city-owned property to the tax rolls, and provides publicly accessible plaza improvements. City economic development administrator Carrie Kruse told axios.com that the two projects cannot coexist as currently proposed and that each will be judged on its own merits.
While acknowledging that the arts center’s proposal presents an aspirational vision, staff stated in the report that it lacks a plan for financing and support. The report noted that no documented letters of support, participation agreements, or financial commitments have been provided by potential user organizations. Staff also raised concerns about the feasibility of building over infrastructure underneath the street, citing substantial preliminary relocation costs and an uncommitted construction schedule targeted for 2029.
Mike Whalen, president and CEO of Heart of America Group, stated that he had not seen the staff report but intended to continue advancing the project. Whalen told businessrecord.com that his company never stopped working during the 30-day period and plans to initiate geotechnical and civil work as soon as possible. Whalen also noted that he was unaware of the arts center proposal until after submitting his company’s bid, stating it was never meant to be a competition.
Isley maintained that reorienting the Heart of America building toward East Locust Street could free up necessary land for the theater while allowing both developments to proceed. The vacant lot across from the former City Hall is less than half an acre and assessed at almost $773,000, according to the Polk County Assessor cited by axios.com.